December 13, 2009

Jim Rogers Is Bearish On The US Economy: "It`s Getting Worse, Not Better"

Jim Rogers was interviewed on Yahoo Finance`s TECH Ticker. He is bearish on the US Economy and said that the United States is "doing the Japanese model". These are the highlights from that video interview:

"Papering over the problem is not going to solve America's problem. The idea you can solve a problem of too much debt and too much consumption with more consumption and more debt defies belief. I cannot believe that grownups would stand there and say that."

"History shows the only way to solve a financial crisis is when people go bankrupt, you let them go bankrupt. Then, competent people come in, take over the assets, reorganize and you start over. But rather than take the pain and reorganize and start over, as Sweden, South Korea and others have done, America is doing the Japanese model."

"What has been happening is the government has been printing and spending a lot of money. The problem is not solved - they're making the problem worse."

"The problems in last two years came from industries that are heavily regulated: banking, insurance, mortgage. Now what? You're going to make the regulations tougher? It's not the regulations, it's the regulators."

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